Strong quarter for Viacom


Viacom beat Wall Street expectations with its Q3 financial results. The movie studio side led the way, but Viacom’s cable networks also grew revenues.

Total revenues rose 22% to $4.05 billion. At Paramount, the movie studio, revenues more than doubled and the home entertainment business grew 26%. So film revenue jumped 46% to $1.79 billion.

Cable networks revenues rose 8% to $2.29 million. CEO Philippe Dauman credited growth in both advertising and subscriber fees. However, he did warn analysts that advertising is looking a little softer in the current quarter. Also, the company is expecting a “blip” in this quarter because of an “inexplicable” ratings drop for Nickelodeon. Dauman said Viacom is working with Nielsen to see what is going on – and he wants to fix the issue because “toys are a strong category this quarter.”

Viacom also announced an increase in its stock buyback program – to $10 billion, leaving about $7.2 billion available for buying back shares over the next couple of years.